While buying cryptocurrencies and holding them to wait for prices to rise then sell them at a profit has been many people’s preferred way of earning from digital coins, there are other ways you can make money. If you are in crypto for the long term, you should find out how to earn interest on Bitcoin (or any other coins) you may be holding. When you let your crypto earn interest, you receive a passive income, and you stand to compound your gains and grow your crypto holding if your digital assets markets keep growing in value.
What do you need to do to earn interest on crypto?
One of the downsides of cryptocurrencies, especially Bitcoin, is that their prices are highly volatile, dropping or rising unexpectedly. This can lead to massive gains but also heavy losses. However, seasoned crypto investors and traders understand this volatility and use altcoins they trust and stable coins to cushion themselves.
In addition, crypto traders use crypto interest-earning accounts to earn more profits on their investments. To earn interest on crypto, you need to open a crypto savings account with a reputable crypto lending platform such as YouHodler. Theoretically, opening an account for crypto saving follows the same procedure as a conventional savings account. This means you deposit your BTC or altcoins without any deposit limits or lockup period, and the crypto earns interest. You even earn compound interest on the principal plus the interest if you let them stay in the account.
The interest is paid periodically, say weekly, monthly, and so on, and you can receive the interest payouts and even withdraw funds whenever you want. However, you should understand that your interest from cryptos is subject to market forces, and you are paid in the same currency you deposited.
Why should you choose YouHodler as the platform for earning interest in crypto?
There are many platforms where you can earn interest on crypto, but YouHodler is one of the best exchanges where you can enjoy crypto interest. One of the reasons to choose YouHodler is that the platform is secure and guarantees your assets and earnings security. Another reason is that the platform has an easy procedure that you need to follow to earn interest on crypto. You deposit your digital coins such as BTC, ETH, USDC, USDT, PAXG, XLM, XRM, and others, and if you don’t have cryptos, you can convert your fiats like USD or GBP into cryptos. When you deposit the funds into the crypto savings account, the weekly payment period starts counting, and you earn free crypto when it ends. The interest payments are deposited into your account, and you can then withdraw them or keep them there to earn more interest.
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What are the pros of earning interest in crypto?
Below are some of the benefits that you enjoy when you earn interest in crypto:
- Higher interest rates than ordinary savings accounts
- The interest-bearing accounts have a short or no minimum lock-up time on the digital coins
- As your cryptocurrencies appreciate in value so does the interest you earn
- Most platforms have no minimum amount needed to open an interest-earning crypto account
What are the cons of interest-earning accounts?
- Your interest depreciates with a fall in prices of the digital coins
- The accounts have floating interest rates that offer no guarantee that the rates remain high in the long-term
- The interest-earning accounts are not well regulated, posing risks of scams
As you can see, you can earn interest on cryptos by opening interest-bearing accounts, so you enjoy passive income. However, you need to choose the best platforms like YouHodler and take any necessary measures to avoid losses.